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Jarvis has won a £300m contract to build 15 schools in Merseyside – the largest school rebuilding project ever seen in the UK. Meanwhile, in a separate development, Kier subsidiary Academy Services has signed a £58m public–private partnership contract to build and maintain 12 schools in Essex.

City analysts see the deals as a much-needed boost after attacks on the PFI from unions, and the uncertainty left by the demise of Railtrack.

Jarvis will also provide facilities management for the schools, including building and ground maintenance, caretaking, cleaning, catering and security, for 30 years. In addition to the new-build element Jarvis will also refurbish and maintain three other schools for 30 years. The project is expected to create 2000 jobs in total.

A Jarvis spokesman said the value of the contract had been increased by £50m since the preferred bidder stage because the maintenance contract had been extended from 25 to 30 years. The spokesman said work had begun on some projects and was due to be completed in September 2004.

Jarvis has been appointed preferred bidder, or has won contracts, to provide and maintain schools for 79,000 pupils in 83 schools across the UK and Ireland.

Academy Services, a 50/50 joint venture between Kier and Dexia, a public finance bank, will refurbish and maintain the Essex schools for 32 years. Two Kier companies will be involved: French Kier Anglia will undertake the £15m design-and-build contract and Caxon Integrated Services will provide facilities management.

City analysts see the deals as a boost for PFI and PPP sector

Kier chairman Colin Busby said PFI and PPP would continue to play an increasing role in the provision of infrastructure in education, health and many other vital services. He said Kier wanted to be involved.

David Taylor, of brokers Teather and Greenwood, said the projects were significant, given the economic circumstances and concern over PFI.

He noted that as PFI contracts were tightly negotiated, especially in the education sector, these projects should be problem-free.

n Balfour Beatty has won a 30-year public–private partnership deal to build a 299-bed hospital at Blackburn, Lancashire, in a joint venture with Charterhouse bank, which will arrange the finance. The work is to be completed in three years, after the deal is finalised next spring.